Capital Gains Tax Calculator UK
Selling an asset that has increased in value can trigger a Capital Gains Tax bill in the UK. This applies to second homes, buy-to-let properties, and shares held outside an ISA.
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A common misconception is that capital gains tax applies to the full sale price. In reality, you only pay tax on the gain – the difference between what you paid and what you sold it for. You also get an annual tax-free allowance of £3,000 for 2026/27.
Knowing your potential capital gains tax liability in advance helps you plan disposals strategically – perhaps splitting sales across tax years to use multiple allowances. Enter your asset details below to see an estimate of your CGT bill.
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax on the profit you make when you sell or 'dispose of' an asset that has increased in value. You don't pay CGT on the full sale price - only on the gain (the difference between what you paid and what you sold it for). Common examples include selling a second home, shares, or valuable personal possessions worth over £6,000. Your main home is usually exempt from CGT.
Enter Your Details
Include solicitor fees, stamp duty on purchase, improvement costs
Gains stack on top of income. Any part of the gain above the £50,270 basic-rate limit is taxed at the higher rate.
Your CGT Estimate
How Capital Gains Tax Is Calculated
Capital Gains Tax is calculated on the profit you make when selling an asset, not the total sale price. Here's the step-by-step calculation:
Step 1: Calculate Your Gain
Sale price minus purchase price minus allowable costs (solicitor fees, stamp duty paid, improvement costs)
Step 2: Deduct Your Allowance
Subtract the Annual Exempt Amount (£3,000 for 2026/27). This is your taxable gain.
Step 3: Determine Your Rate
Your CGT rate depends on your income tax band. For 2026/27, rates are 18% (basic) or 24% (higher) on all assets.
Step 4: Calculate the Tax
Multiply your taxable gain by the appropriate CGT rate to find your tax liability.
Example Calculation
You sell shares for £50,000 that you bought for £20,000, with £1,000 in dealing costs. As a higher rate taxpayer in 2026/27:
- • Gain: £50,000 - £20,000 - £1,000 = £29,000
- • Less allowance: £29,000 - £3,000 = £26,000 taxable
- • CGT at 24%: £26,000 × 24% = £6,240
Capital Gains Tax Rates Explained
Since October 2024, CGT rates are unified at 18% (basic rate) and 24% (higher/additional rate) on all assets. There is no longer a distinction between residential property and other assets.
| Tax Year | Allowance | Basic Rate (Other) | Higher Rate (Other) | Basic Rate (Property) | Higher Rate (Property) |
|---|---|---|---|---|---|
| 2026/27 | £3,000 | 18% | 24% | 18% | 24% |
| 2025/26 | £3,000 | 18% | 24% | 18% | 24% |
| 2024/25* | £3,000 | 10% → 18% | 20% → 24% | 18% | 24% |
| 2023/24 | £6,000 | 10% | 20% | 18% | 28% |
| 2022/23 | £12,300 | 10% | 20% | 18% | 28% |
*In 2024/25 the non-property rates rose from 10%/20% to 18%/24% for disposals made on or after 30 October 2024 (Autumn Budget 2024).
Unified CGT Rates since 30 October 2024
Since the October 2024 Budget, CGT rates on all assets are unified at 18% (basic rate) and 24% (higher/additional rate). The previous lower rates of 10%/20% for non-property assets no longer apply.
When Capital Gains Tax Applies
CGT applies when you dispose of an asset - this includes selling it, giving it away, swapping it, or receiving compensation for it. Here's what's taxable and what's exempt:
You May Owe CGT On:
- • Second homes and buy-to-let properties
- • Shares and investments (outside ISAs)
- • Business assets
- • Personal possessions worth over £6,000
- • Cryptocurrency
- • Inherited assets (when you sell them)
Usually Exempt From CGT:
- • Your main home (Private Residence Relief)
- • ISA and pension investments
- • Personal possessions worth under £6,000
- • UK Government gilts and Premium Bonds
- • Betting and lottery winnings
- • Assets transferred to your spouse/civil partner
Reporting and Payment Deadlines
UK Residential Property
Report and pay within 60 days of completion using HMRC's 'Report and pay Capital Gains Tax on UK property' service.
Other Assets
Report through your Self Assessment tax return by 31 Januaryfollowing the end of the tax year.
Frequently Asked Questions
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